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Investor activists are pressing the UK’s largest supermarkets to reinstate pay in line with the real living wage, as many chains have stepped back from this benchmark in recent years.
The real living wage, a voluntary standard reflecting the actual cost of living, is currently £13.45 an hour nationwide and £14.80 in London—higher than the £12.71 national minimum wage for workers aged 21 and over, which rose on April 1.
Marks & Spencer recently confirmed that its latest wage increases, though at least 6.4% and above inflation, no longer meet the living wage. The Co-operative Group similarly abandoned its “long-standing commitment,” offering a 3.5% rise from April. Tesco and Sainsbury’s, the sector’s two largest chains, have also ceased matching the real living wage since 2025.
Discount chains Aldi and Lidl remain the only major supermarkets paying entry-level staff in line with the benchmark, with Aldi exceeding it. The John Lewis Partnership, owner of Waitrose, has raised staff pay by 6.9% from April, meeting the living wage only within the M25.
ShareAction says pushing firms to commit to fair pay will be a “major focus” at upcoming shareholder meetings, despite mounting sector pressures, including higher National Insurance contributions.
Louise Eldridge, head of good work at ShareAction, told the Press Association: “It’s disappointing to see supermarkets like M&S, Sainsbury’s and Tesco moving away from matching the real Living Wage pay rates after setting the pace in recent years.
“We know retailers are under real pressure.
“The latest Living Wage rise reflects higher living costs, but that’s exactly why paying people a wage they can actually live on is so important.”
She added: “Investors have been making the case to these companies that better pay has proven business benefits, from better morale to lower turnover and higher productivity.
“We’ve made progress on disclosure, but that alone won’t help staff cover the basics, so we’re continuing to push for concrete commitments on pay. This will be a major focus for us at supermarket AGMs this year.”
A Co-op spokesperson said: “In recent years we have aligned our lowest rates of pay with the Real Living Wage, although we are not formally accredited as a Real Living Wage employer.
“Pay is considered as part of our wider reward offer, which includes benefits such as paid breaks, colleague discounts and wellbeing support.”
An M&S spokesperson said: “At M&S we’ve increased UK retail colleague pay by 34% and invested more than £350 million over the last four years while also offering sector leading benefits. This reflects the central role our people play as we reshape M&S for growth.”
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